Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Team (Social)
• Health and Safety
• Community
• Governance

Environmental Achievements

• Reduced GHG emissions intensity over four years despite increased LNG production.
• Methane intensity of 0.008% in 2019 (0.00008 metric tons of methane emitted per metric ton of LNG produced).
• Implemented various emission control technologies (low NOx burners, Dry Low Emissions technology, compressed air controllers).
• Implemented coastal restoration and mitigation projects (Calcasieu Lake Biodiversity Offset, Sabine Pass tidal mitigation project, Shamrock Island breakwater mitigation project, Galveston Bay oyster gardens).

Social Achievements

• Launched local apprenticeship program (40 students participated in 2019).
• Enhanced rotational program to explore various career paths.
• Partnered with Genesys Works to provide internships to high school students from underserved communities.
• Implemented wellness program with incentives for active lifestyles.
• Outperformed safety targets for TRIR and LTIR in 2019.

Governance Achievements

• Established board-level oversight of climate and sustainability issues in 2018.
• Aligned with several TCFD disclosures.
• Implemented robust ethics and compliance programs with 100% of eligible employees completing training.
• Realined executive compensation program to be market competitive and aligned with long-term shareholder value creation.

Climate Goals & Targets

Environmental Challenges

• Potential climate-related physical risks (severe weather events, rising sea levels, rising temperatures).
• Potential climate-related transition risks (stringent regulations, technological advancements, market risks, reputational risks).
• Managing methane leakage across the natural gas value chain.

Mitigation Strategies

• LNG facilities designed and operated to withstand extreme weather conditions.
• Emergency response plans developed and implemented at every asset and facility.
• Engaging natural gas suppliers on managing their emissions footprints.
• Co-founded the Collaboratory to Advance Methane Science (CAMS) to improve scientific understanding of methane emissions.
• Implementing a climate and sustainability strategy to strengthen Cheniere’s business model in the global energy transition.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct with expectations in environmental stewardship, health and safety, and regulatory compliance.
• Risk assessments of suppliers during prequalification process.
• Monitoring of suppliers on regulatory compliance and financial stability.
• In 2019, 70% of gas purchased from producers committed to methane reduction targets; 79% participated in voluntary emissions reduction programs.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of severe weather events.
• Rising sea levels.
• Rising average temperatures.

Transition Risks

• Stringent regulations.
• Technological advancements.
• Market risks.
• Reputational risks.

Opportunities

• Improvements in facility design, energy, and production efficiency.
• Investment in R&D related to emissions characterization and management.
• Investments in CCUS.
• Increased customer demand for lower-emitting LNG.

Reporting Standards

Frameworks Used: IPIECA/IOGP/API, SASB, GRI, TCFD

Certifications: ISO 14001 (partially implemented)

Third-party Assurance: Deloitte & Touche LLP (limited assurance on select indicators for 2019)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Alignment is in process of being mapped.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity, Equity and Inclusion
• Community Engagement

Environmental Achievements

• Completed quantification, monitoring, reporting and verification (QMRV) of GHG emissions at natural gas gathering, processing, transmission, and storage systems; published a paper on the findings.
• Completed field measurement campaign for liquefaction QMRV research; concluded multi-year QMRV research and development project series.
• Published fourth Corporate Responsibility report detailing ESG approach and progress.
• Launched lifecycle analysis (LCA) supplier portal web application.
• Initiated pre-filing review process with FERC for a proposed carbon capture and sequestration project.
• Co-founded and sponsored the Energy Emissions Modeling and Data Lab (EEMDL).

Social Achievements

• Maintained female representation on the Board at 33%.
• Employed 39 students through the 2023 summer internship program (51% female, 67% racially/ethnically diverse).
• Invested $1 million in DEI-focused community programs.
• Provided nearly 50 scholarships to students of HBCUs.
• Hired a dedicated external DEI consultant.
• Introduced a supplier diversity program.
• Cheniere team supported communities with over 13,000 hours of volunteering and $5.6 million of direct giving.

Governance Achievements

• Engaged annually with shareholders holding in excess of 50% of common stock regarding governance matters.
• Added details regarding director experience and Board diversity to proxy statements.
• Expanded Governance and Nominating Committee oversight to include DEI.
• Added cybersecurity oversight responsibility to the Audit Committee charter.
• Issued annual corporate responsibility reports.
• Undertook Board refreshment (5 of 9 director nominees joined since 2021).
• Enhanced proxy statement disclosure surrounding climate strategy, human capital management, and human rights and labor standards.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Floods
• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, IPIECA

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Institutional Investor: First place overall, including Best ESG Program and Best Company Board